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Approaching Resistance

USDJPY TECHS
  • RES 4: 137.27 76.4% retracement of the Jul 14 - Aug 2 downleg
  • RES 3: 136.58 High Jul 28
  • RES 2: 135.96 61.8% retracement of the Jul 14 - Aug 2 downleg
  • RES 1: 135.58 High Aug 8
  • PRICE: 135.09 @ 06:25 BST Aug 18
  • SUP 1: 134.04 50-day EMA
  • SUP 2: 132.56/31.74 Low Aug 15 / Low Aug 11
  • SUP 3: 130.41/130.00 Low Aug 2 / Round number support
  • SUP 4: 129.51 Low Jun 2

USDJPY traded higher again Wednesday, extending the bounce off Monday’s 132.56 low. Firm short-term resistance is unchanged at 135.58, Aug 8 high. The Aug 10 sell-off continues to highlight a potential reversal of the recent Aug 2 - 8 correction. Note, a broader bearish theme remains in place following the Jul 28 bull channel breakout. The channel is drawn from the Mar 4 low. A resumption of weakness would open 130.41, the Aug 2 low.

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